Regional price differences of medical services: evidence from China

Table 5 The two-way fixed effects model results of correlation between medical service price levels and income levels

Variables	Medical service price level (log transformed)
听	(1)	(2)	(3)
Disposable income per capita (log transformed)	-0.83^***	-1.06^***	-1.70^***
听	(0.24)	(0.29)	(0.26)
Affordable months by the fund (log transformed)	听	0.12^*	0.10^*
听	听	(0.06)	(0.05)
Proportion of population above 65	听	-1.23	-2.04^*
听	听	(0.86)	(0.96)
Basic medical insurance coverage	听	-0.02	-0.02
听	听	(0.01)	(0.01)
Density of physicians (log transformed)	听	0.22	0.12
听	听	(0.13)	(0.17)
Density of hospital beds (log transformed)	听	-0.14	0.03
听	听	(0.08)	(0.16)
Observations	279	217	155
R²	0.21	0.34	0.35

Notes^***, ^** and ^* denote the significance at the 0.1%, 1% and 5% level, respectively. Two-way cluster-robust standard errors are reported in parentheses. Medical service price level is the spatial price index estimated using the GEKS method. Affordable months by the fund is defined as the accumulated medical insurance fund balance at last year-end divided by the average monthly expenditure over the last year. Basic medical insurance coverage is defined as the percentage of the population covered by Chinese basic medical insurance. Density of physicians and hospital beds are defined as the total number of physicians and hospital beds per 10,000 population, respectively

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